Shiba Inu’s 17% uptick means THIS for memecoin’s long-term odds

Buying pressure on Shiba Inu has risen over the last few days
Derivatives metrics also flashed bullish signs for the memecoin

As a seasoned crypto investor, I’ve seen my fair share of market swings and memecoin trends. The recent surge in buying pressure on Shiba Inu [SHIB] has piqued my interest once again. The double-digit price hike over the last 24 hours is an encouraging sign after last week’s sharp fall.

Shiba Inu (SHIB), the second-largest meme cryptocurrency, experienced a notable rebound in value following a significant decline during the previous week. The substantial price surge within the last day instilled optimism among investors, potentially signaling the start of an extended bull market trend.

Hence, it’s worth looking at what’s going on with SHIB lately.

Shiba Inu’s bulls buckle up

Last week, bears heavily influenced the SHIB market, causing its price to plummet as low as $0.000013. However, bulls have recently made their presence known with a significant 10% increase in price. As reported by CoinMarketCap, there has been an impressive surge of 17% for SHIB within the last 24 hours.

Currently, Shiba Inu (SHIB) is priced at $0.00001543 per token and has a total market value exceeding $9 billion. This puts SHIB as the cryptocurrency with the 13th largest market capitalization.

The price surge had a favorable effect on the memecoin’s market sentiment, as indicated by AMBCrypto’s interpretation of Santiment’s data. This analysis revealed that Shiba Inu investors have been purchasing more coins, as evidenced by an increase in its off-exchange supply and a corresponding decrease in its off-exchange supply. Additionally, the heightened demand was underscored by the significant uptick in exchange outflows.

Last week, I observed a lack of substantial activity from the whale community based on the stable supply held by leading wallets.

Shiba Inu’s 17% uptick means THIS for memecoin’s long-term odds

On July 8th, the Shiba Inu’s MVRV (Money-Weighted Average Ratio of Value) saw a significant enhancement. This development can primarily be linked to its recent price surge. Nevertheless, there were some unfavorable aspects for the memecoin as well.

As a crypto investor, I would interpret this as follows: The number of new addresses utilizing the Shiba Inu token for transfers has decreased, indicating a slowdown in network growth. Additionally, the token’s velocity has declined. This suggests that the frequency of Shiba Inu transactions within a specific timeframe has reduced.

Shiba Inu’s 17% uptick means THIS for memecoin’s long-term odds

Will SHIB’s rally last?

To gain a clearer perspective on the anticipated behavior of the meme coin, AMBCrypto examined its derivative metrics through Coinglass’s data. Notably, we identified a significant surge in SHIB‘s long/short ratio.

As an analyst, I would interpret a rising long-short ratio as a sign that investors are increasingly taking on more long positions than short ones. This trend suggests a prevailing bullish sentiment in the market.

As a researcher observing the Shiba Inu (SHIB) cryptocurrency market, I note that the fear and greed index stood at 31% during my investigation. This reading indicates that the market was experiencing fear, suggesting potential selling pressure due to investor sentiment.

Whenever the metric hits that level, it means that the chances of a price hike are high.

Finally, the technical indicator MACD displayed the possibility of a bullish crossover.

As an analyst, I’d interpret this observation as follows: The Relative Strength Index (RSI) has moved out of the oversold territory for the cryptocurrency. In simpler terms, the RSI indicator has signaled that the currency may have been undervalued and could potentially experience upward price momentum. Consequently, this development can be considered a bullish indication for the cryptocurrency market.

2024-07-07 05:11

Shiba Inu’s bulls buckle up

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